US Stock Market Moves to T+1 Settlement Cycle Starting May 28th

May 27, 2024, 07:46 PM

The US stock market is transitioning to a T+1 settlement cycle, reducing the time it takes to settle trades from two days to one. This change, mandated by the US Securities and Exchange Commission (SEC), aims to modernize trading practices and increase efficiency. Effective from May 28th, all broker-dealers and market participants are required to comply with this new settlement cycle. The move marks a significant shift for Wall Street, which has operated on a T+2 basis for over a century.